1. (1) Nontaxable sales and services. Charges by a barber or beauty shop operator for services on human beings are not subject to sales tax.

2. (2) Taxable sales and services.

   1. (a) Sales of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), or (d), Stats., including packaged cosmetics, hair tonics, lotions, shampoo, wigs, falls, and toupees, and their charges for servicing wigs, hair pieces, or other tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., are subject to sales tax. Except as provided in par. (b), a barber or beauty shop operator who engages in sales subject to sales tax under this subsection shall register as a retailer and is responsible for collecting and remitting to the department the tax on taxable sales or charges.

   2. (b) A barber or beauty shop operator’s sales are not subject to Wisconsin sales tax if the barber or beauty shop operator does not hold and is not required to hold a Wisconsin seller’s permit. A barber or beauty shop operator is not required to hold a seller’s permit and register as a retailer to collect Wisconsin sales tax if the barber or beauty shop operator’s total taxable receipts from sales of tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., and taxable services are less than $2,000 during the calendar year.

      Note: Refer to s. Tax 11.002 for a description of permit requirements, how to apply for a permit and the 15-day time period within which the department is required to act on permit applications.

      Note: Refer to s. Tax 11.33 for additional information relating to occasional sales.

3. (3) Taxable and nontaxable purchases.

   1. (a) A barber or beauty shop operator’s purchases of tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., and taxable services, which when resold are exempt occasional sales under sub. (2) (b) are taxable purchases of property, items, goods, and services.
   2. (b) Persons who register and collect sales tax under sub. (2) (a) may purchase tangible personal property, such as hair pieces, for resale without paying tax by issuing their supplier a properly completed exemption certificate, claiming resale.
   3. (c) Tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., purchased by a barber or beauty shop operator and used in providing services are subject to sales or use tax.

   4. (d) If a barber or beauty shop operator gives an exemption certificate claiming resale for tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., to a supplier and then uses or consumes the property, item, or good in providing services, the barber or beauty shop operator is liable for use tax at the time the property, item or good is first used in a taxable manner.

      Note: Section Tax 11.62 interprets ss. 77.51 (9) and (13) (i), 77.52 (2) (a) 10., 77.54 (7), and 77.57, Stats.

      Note: The interpretations in s. Tax 11.62 are effective under the general sales and use tax law on and after September 1, 1969; except (a) the separate impositions of tax on coins and stamps sold above face value under s. 77.52 (1) (b), Stats., certain leased property affixed to real property under s. 77.52 (1) (c), Stats., and digital goods under s. 77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2 and (b) The threshold for exempt occasional sales was changed to less than $2,000 in annual sales, effective for sales beginning January 1, 2018, pursuant to 2017 Wis. Act 59.

History

History: Cr. Register, August, 1976, No. 248, eff. 9-1-76; am. (1) (b), Register, August, 1985, No. 356, eff. 9-1-85; r. and recr., Register, March, 1991, No. 423, eff. 4-1-91; EmR0924: emerg. am. (2) and (3), eff. 10-1-09; CR 09-090: am. (2) and (3) Register May 2010 No. 653, eff. 6-1-10; CR 20-018: am. (2) (b) Register July 2021 No. 787, eff. 8-1-21.